A safe and efficient transportation system creates the foundation for economic growth and improved quality of life.

However, the current state motor-fuel tax is causing our transportation system to fall into disrepair. The motor-fuel tax has lost 40 percent of its purchasing power since 1997 and continues to drop due to inflation and more efficient vehicles. This lack of action will end up costing our state up to 10 times the amount in maintenance costs and several magnitudes more in lost economic output.

H.B. 135 addresses the structural imbalance of the motor-fuel tax and takes a prudent step towards addressing Utah’s transportation challenges. This bill would reduce the motor-fuel tax to a 12.2 cent per gallon base, and adjust annually based on a five maintenance variable index capped at 2% increase and will sunset in 2021. This bill captures the broad base benefit of an efficient and well maintained transportation system. This is not a tax increase as the bill is revenue neutral in its first year and critically preserves purchasing power in the motor-fuel tax through the annual adjustments.

I urge you to support and pass H.B. 135 – Transportation Funding Amendments out committee favorably.